Career Advice Feb 01 2012

Goodwin at RBS Outguns Hester in Pay While Losing Knighthood

By fara khalique

Sir Fred Goodwin may now be just plain Mister Fred Goodwin. But while his successor, Stephen Hester, has been forced to give up his bonus again, Goodwin at least has his money to console himself.

Using RBS company reports, the UK bank said it had paid out more than £20m in salary and bonuses as chief executive between 2000 and his departure in 2008, including through "profit shares".

In addition, Goodwin continues to earn around £342,500 per year for his pension – which is nearly one-third of Hester's total 2011 remuneration.

Stephen Hester and RBS declined to comment. Fred Goodwin could not be reached for comment.

Fred Goodwin

RBS chief executive from March 6, 2000, to October 2008

2001: £733,000 salary, £825,000 bonus

2002: £832,000 salary, £1.73m bonus

2003: £898,000 salary, £990,000 bonus

2004: £990,000 salary, £1.5m bonus

2005: £1.09m salary, £1.76m bonus

2006: £1.19m salary, £2.76m bonus

2007: £1.29m salary, £2.86m bonus

2008: £1.3m salary, no bonus awarded

Total: £20.75m

Pension pot: Worth £342,500 per year (although this was cut from £703,000 per year)

Stephen Hester

RBS chief executive from October 2008 to present

2008: £1.2m salary, declined bonus.

2009: £1.2m salary, declined bonus

2010: £1.2m salary, accepted a bonus of £2.04m in shares. These shares are now worth approximately half, according to an RBS spokeswoman.

2011: £1.2m salary, Hester declined his £963,000 bonus in RBS shares

Total: Around £6m in salary and shares.

Hester also received a "golden hello" of 10.4 million shares worth £5m. He has sold almost half and now has 5.4 million shares which, at the current share price, are worth £1.45m

Pension pot: Worth £420,000 per year

This story first appeared on Financial News.

--write to farah.khalique@dowjones.com




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